In addition, the purchase agreement includes a participation payment of up to $125 million based on the future profitability of the refinery. Proceeds for related inventory are estimated at $640 million, with $350 million paid in cash at closing and the remaining balance payable [image-nocss] in 90 days. After settlement of related crude payables, net proceeds are expected to be approximately $300 million on a pretax basis.
"We are focused on operating our remaining refineries in a safe, reliable and environmentally sound manner," said Lynn L. Elsenhans, Sunoco's chairman and chief executive officer. "As part of our drive to become the premier provider of transportation fuels, we continue to look for opportunities to grow our retail business in and near our Northeast markets. Similarly, we are committed to supporting the growth of our logistics business both inside and outside the historic Sunoco footprint."
(Click here for previous CSP Daily News coverage of Sunoco's strategy shift.)
Sunoco's existing retail marketing and logistics operations in Ohio and neighboring states are not impacted by the sale, the company said. It continues to supply refined products to its branded distributors through a long-term off-take agreement with PBF.
"We are grateful to the talented and dedicated employees who made the Toledo refinery an important part of the company for many years," Elsenhans said.
Sunoco is a leading transportation fuel provider, with operations located primarily in the East Coast and Midwest regions of the United States. The company sells transportation fuels through more than 4,900 branded retail locations in 23 states. APlus convenience stores are operated by the company or independent dealers in more than 600 of its retail locations. The retail network in the Northeast is principally supplied by Sunoco-owned refineries with a combined crude oil processing capacity of 505,000 barrels per day.
Sunoco is also the General Partner and has a 31% interest in Sunoco Logistics Partners LP, a publicly traded master limited partnership which owns and operates 7,600 miles of refined product and crude oil pipelines and approximately 40 active product terminals. Many of Sunoco Logistics' pipelines and terminals and storage facilities are integrated with Sunoco's retail network and refineries.
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